I hate giving stock advice to a friend… but I do anyway

I love stocks and I love my friends. I think I have a good strategy and I know more about the stock market than most of my friends.

Still, I hate giving them advice about stocks. I would rather loose 1000 $ myself than costing my friend 50 $ on the stock market.

But what I can do, is give my friends advice on how to approach the stock market

I believe in my strategy.

In short my strategy is to buy a small amount of stocks every month. The stocks has to pay a dividend and I try to diversify as much as possible.

In the US it would problably be easier to find relevant ETF’s paying dividends, but in Denmark we have en tax-system that doesn’t understand ETF. In my strategy I build my own ETF of global dividend paying stocks.

Since I’m buying every month I don’t care about ups and downs in the stock market. Dollar-cost-averaging will save my poor choices in the top of the bull market.

My strategy has some great advantages:


I only buy small amounts of stocks every month. But in return I buy stocks in a lot of different companies. In stead of picking the one stock that will perform the best in the future, I can buy stocks in 10 of the most popular brands. If one company goes down, the others will benefit. I won’t get the best return compared to the experts who can predict the future and pick the best one, but I will get a pretty safe return.


This approach is all about leveling out your investments. You acknowledge that you can’t time the market and instead you buy stock continuously.

Dividend compound

By continuously buying stocks I have the possibility of taking advantage of the powerful force of compounding dividends. When I get dividends in February I use them to buy additional dividend stocks in April. This is a snowball effect and I can not tell you how much I love it!!


By following this approach to buying stocks you will have a lot of fun. I like to research for dividend stocks with low PE ratio and dividend stability. I also enjoy getting dividends every month. They motivate me, and keep me at my toes.

But take notice: I don’t say this is the best strategy!!!

There are a lot of people trying to beat the market. I know I can’t. This strategy won’t give me the best possible return. But I’m pleased with a good return on my investment- It doesn’t have to be fantastic or remarkable.

I believe in the power of compound interest and this is my way to take advantage of it.

The strategy only works if you have a small amount to invest every month. It down’t work if you have a huge chunk of cash that you wan’t to put into the market all at the same time.